Due to the nature of prepaid cards, many of the traditional fraud analysis tools are not applicable and will not detect the types of fraud associated with prepaid products. For example, because an Issuer of a credit card is extending credit, the Issuer will typically use a credit score to screen the applicant. However, for prepaid cards, the Issuer acts as a merchant and is selling a product and not extending any type of credit, thus credit scores are not applicable.
Accordingly, as recognized by the present inventor, what is needed is a system and method for using enrollment and transaction parameters to identify potential fraud cases in a prepaid device environment.
It is against this background that various embodiments herein were developed.